State of New Jersey, Department of Environmental Protection, Plaintiff-Respondent, and the City of Newark…

Summary

The Supreme Court of New Jersey affirmed the Appellate Division’s judgment that the insurer’s comprehensive general liability policy does not cover the environmental‑cleanup costs incurred by the Department of Environmental Protection because the policy’s owned‑property exclusion applies and the policy’s definition of “damages” does not encompass cleanup expenses absent third‑party property damage. The Court rejected the argument that the threatened off‑site contamination was sufficient to overcome the exclusion. Justice O’Hern’s dissent argued that the cleanup costs should be treated as damages and that the exclusion should not bar coverage.